Diageo Expands in Vietnam
Diageo, the world’s leading premium drinks business, has entered into a strategic partnership agreement with Halico, the largest domestic branded spirits producer in Vietnam. Diageo is acquiring a 23.6% stake in Halico for about £33m.
The strategic partnership agreement with Halico represents a significant move by Diageo into the fast growing Vietnamese branded spirits sector. Halico is well-positioned to benefit from this growth given its significant distribution scale and recent investment in a new state-of-the-art production facility.
As Halico’s strategic partner, Diageo will assist Halico in enhancing its capabilities across a range of functions, including innovation, branding, supply, distribution and corporate relations. In return, Diageo will become a long term equity investor in Halico and its main brand Vodka Hanoi.
In parallel and separately, Diageo will continue to develop its international premium spirits portfolio, led by Johnnie Walker, Smirnoff and Baileys, through its wholly owned subsidiary Diageo Vietnam.
